If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
Happy Money personal loans were designed for one specific purpose: to help you pay off high-interest credit card debt. Strictly speaking, Happy Money isn't a bank. Instead, it partners with other financial institutions to originate loans. Still, if you're asking "is Happy Money legit?" The answer is yes. Happy Money are for borrowers who are serious about eliminating their credit card debt. In our complete Happy Money review, we'll explore the great things about a Happy Money, as well as features that could be improved upon.
Happy Money makes loans to pay off other, more expensive debt. Qualified borrowers get rates that are hard to beat and a loan term up to five years.
This personal loan is a good fit for: Borrowers with good credit looking to consolidate high-interest debt.
Low APRs: Happy Money's lowest APRs are among the lowest personal loan rates. It's likely to be much lower than the interest rate on your credit card. Happy Money is able to keep its interest rates low by minimizing risk to itself (meaning it only accepts highly-qualified borrowers). Happy Money requires borrowers to have a higher FICO® Score than many other lenders, as well as a lower debt-to-income ratio than other lenders.
Long loan terms: Happy Money's loan terms range from 24 to 60 months. Borrowers can pick a repayment term that is long enough to give them some breathing room in their budgets. The longer the loan term, the lower the monthly payment. The shorter the loan term, the less a consumer ends up paying in interest.
No hidden fees: Happy Money only charges one fee: An origination fee of between 0% and 5% of the loan amount. In fact, they've eliminated fees that some other lenders cling to, like late fees, prepayment fees, and returned check fees.
Free FICO® Scores: If you accept a loan from Happy Money, you'll get access to a free FICO® Score that updates once per month. Access to your FICO® Score is valuable, as it allows you to keep track of the three-digit number used by lenders to determine your creditworthiness. As you pay down credit card debt, you'll likely see an improvement in your score as you'll lower your credit utilization ratio. Many free credit scores you find online are just simulations or approximations of your true credit score.
Apply without harming your credit score: While this feature isn't unique to Happy Money, it is invaluable. Happy Money will give you a quote for a loan by doing a soft credit check, which won't hurt your credit. Happy Money will only carry out a hard credit check if you decide to move ahead with the loan. This enables you to shop around for a low rate without having multiple inquiries weigh down your credit score.
Large loan amounts: A Happy Money loan can range in size from $5,000 to $40,000, which makes it a great one-stop shop for people looking for loans for debt consolidation.
APR range: The upper range of a Happy Money loan interest rate is in line with the APRs charged by many credit cards -- though credit card interest can add up a lot faster, as you don't have a fixed payment plan.
How significant is APR? Let's say you take out a $10,000 loan for 24 months. With a 24.99% interest rate, your monthly payment would be about $533. The total amount you repay in those two years would be around $12,800, or $2,800 more than you originally borrowed.
Minimum loan amount: With a minimum loan amount of $5,000, a Happy Money loan is not the right fit for someone looking to borrow a smaller amount.
Happy Money is very clear about the types of borrowers who are likely to get approved for one of its personal loans. Here are the basic Happy Money requirements:
The personal loan application process with Happy Money is simple. It works like this:
No matter how good a loan appears at first glance, it's worth making sure that another of the best personal loans doesn't offer better terms. For example:
*Upstart Loan Disclaimer
The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.
*Marcus by Goldman Sachs Disclaimer
Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. Rates range from 6.99% to 24.99% APR, and loan terms range from 36 to 72 months. For NY residents, rates range from 6.99%-24.74%. Only the most creditworthy applicants qualify for the lowest rates and longest loan terms. Rates will generally be higher for longer-term loans. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans). Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions. Receive a 0.25% APR reduction when you enroll in AutoPay. This reduction will not be applied if AutoPay is not in effect. When enrolled, a larger portion of your monthly payment will be applied to your principal loan amount and less interest will accrue on your loan, which may result in a smaller final payment. See loan agreement for details.
A Happy Money loan is a solid option for people who have good incomes and good credit scores but simply got into trouble with high-interest credit card debt. If the following statements apply to you, consider Happy Money.
Our Loans Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters.
Copyright © 2018 - 2023 The Ascent. All rights reserved.